How Much Must the Stock Be Worth at Expiration in Order

question 75

Multiple Choice

How much must the stock be worth at expiration in order for a call holder to break even if the exercise price is $50 and the call premium was $4?

• A) $46
• B) $50
• C) $52
• D)$54

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Definitions:

Wage Rates

The standard amount of pay given for work performed, typically expressed on an hourly, daily, or piecework basis.

Total Wage Income

The sum of all wages received by individuals within an economy, organization, or sector over a specified period.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in a certain period.

United States

A country located in North America, known for its significant impact on global finance, culture, technology, and politics.